I was able to get this working. The first thing you need to do is go to internet options > Programs tab, click "set programs" at the bottom.
Click "Associate a file type with a program" and go down to .pdf (this will tell you what program it will use to open this file type (unless you have Adobe Acrobat, this will usually always say Adobe Reader 9 or another version). Now you need to Launch the said Application that is specific to you. My case it was Adobe Reader 9.
With Adobe reader 9 open, click Edit and Preferences. On the left side you will see options. Click internet to see Adobe's behavior within web pages. Make sure "view PDF in website" is checked at the top. Close IE and reopen and it should work.
If it still doesn't work, click the Tools button in internet explorer and go to Manage add-ons. select "currently loaded add-ons" and you should See a list of Adobe add-ons. Make sure the Adobe Reader add-on is "enabled" and try again.
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